Chatham County is in search of a new fleet operations manager after internal auditors found fuel usage had not been accurately monitored for years, resulting in an inventory reduction of more than $136,000 worth of unleaded gasoline for the last fiscal year.

A budget write down in the fall was required after a review identified $119,000 of unbilled fuel distribution to Chatham departments and other organizations such as the Chatham-Savannah Counter Narcotics Team and Savannah-Chatham police.

Another $18,000 worth of fuel could not be accounted for.

While the review did not find any evidence of theft, the “serious nature” of the findings necessitated the removal of Michael Grant, who had managed fleet services since December 2007, County Manager Russ Abolt said in a memo sent to county commissioners on March 29.

On Thursday, Abolt attributed the problems to mismanagement, stating Grant had relied too much on technology instead of also checking fuel levels manually.

“I will not tolerate as an excuse that the computer made me do it,” Abolt said.

Grant, who is on leave, could not be reached for comment. He has been offered a position as maintenance supervisor in the buildings department, which would be a significant salary reduction for him, said Assistant County Manager Michael Kaigler.

Grant’s salary had been increased from $65,100 to $72,000 in September. Kaigler said the raise was given before the write down and was meant to put Grant’s salary in line with those who hold similar positions.

Prior to becoming fleet operator, Grant had worked since 2004 as a county budget management analyst. His personnel file contained letters praising his performance from then-commander of the counter narcotics team, Roy Harris, in 2004 and David Lowe, director of child support services, in 2010.

Kaigler said he thought Grant was just in over his head after the promotion.

“If it wasn’t for the fact he had been a good employee, we probably would have terminated him,” he said.

After the review of fuel inventory controls was completed in March, auditors determined that many of the fuel transactions had not been properly recorded.

Grant also reported a possible release of fuel at the former fuel filling station along Sallie Mood Drive, which was vacated last year after the public works department relocated from the site.

Abolt said the release may have contributed to the shortage and the site will be tested to determine whether that was the case.

Auditors reported that fuel, as well as other inventory items such as vehicle parts and tires, have a history of inadequate controls at fleet operations going back to 2007, prior to Grant’s management. Accounting for negative and positive variances through the years, the report stated total write downs amounted to almost $168,000 since 2008.

“We would like to note that performing a monthly reconciliation has been a standing recommendation since October 2011 with no compliance to date,” Internal Audit Director Roy Hinely said in a memo dated March 26.

After monitoring usage in January, auditors found the discrepancies continued into this year. Auditors reported a deficiency of 1,165 unleaded gallons and an overage of 4,833 diesel gallons for the month.

Auditors said Grant did not respond to a request for his review and resolution of the difference. The fleet manager said he would prefer to move on to February and get support from the fuel software provider to assist, according to the report.

“The January audit was what convinced me to take the action,” Abolt said.

Fuel management data is controlled by a software system that was last updated in 2006. Grant said the inventory adjustments were the result of an obsolete system that did not provide accurate information and wanted the system replaced.

Auditors were unable to verify his claims and recommended upgrading the software at a cost of less than $1,000, instead of installing a new system Grant had suggested for $147,000.

Auditors also recommended staff participate in the software company’s free training courses in Tallahassee, but Grant was reported as stating telephone communication should preclude the necessity of classroom instruction.

The discrepancies prompted Abolt to send Police Chief Willie Lovett a request in December for an investigation. He also sought the advice of County Attorney Jon Hart regarding the county’s ability to submit employees to polygraph tests.

Hart responded that such tests can be used as long as the questions relate to the performance of official duties and that the answers could not be used against the employee in a criminal prosecution. Abolt said no polygraph tests were given, but a police investigation found no evidence of theft.

Grant was replaced on April 1 by Fred Thompson, who agreed to fill the position on an interim basis after retiring as the county’s building maintenance and operations superintendent in 2011.

ABOUT THE FLEET OPERATIONS DEPARTMENT

The fleet operations department includes a garage with 15 employees who maintain all county vehicles except those assigned to mosquito control.

In addition, the department controls unleaded and diesel fuel at all the county’s fueling stations, which are located at mosquito control, the sheriff’s complex and a temporary location at Memorial Stadium.

A location along Sallie Mood Drive has been discontinued, but was in operation throughout the 2012 fiscal year, the period reviewed by auditors.

FUELING FACILITY SECURITY

A discontinued fueling site at Sallie Mood Drive was operated without an attendant and was not video monitored. The fueling site at the sheriff’s complex has video surveillance only on approach, not directly at the fuel pumps. A site at mosquito control does not have video surveillance.

The permanent sites function without an operator, require a special key for each vehicle and an identification number entered by the vehicle operator. The temporary site at Memorial has a full-time attendant.

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The cororners office and flleet management in the past few months have been audited and lax accounting seems to be a consistent theme. It appears that those who oversee things are asleep at the wheel. I am glad that the auditors are finding this stuff. They better be careful though the county will be looking for new auditors if they do to good of a job.